There are many details and steps to be completed by anyone who intends to incorporate a company in Indonesia. Some of these steps can be somewhat time-consuming and complex. Therefore, some people who plan to incorporate an Indonesia-based company might be considering their options regarding the possibilities of evading certain incorporation steps which they might believe to be unnecessary.
The Incorporation Process in Indonesia
Before the start of the incorporation process in Indonesia, the type of business entity to be used must be selected. Among the business entities which may be selected in Indonesia include the locally-owned company (PT), the foreign-owned company (PT PMA), the representative office, the joint venture, and the sole proprietorship (UD), among others. Once the business entity has been selected, the actual process may begin with the obtaining of valid incorporation documents. The name of the company must be selected and registered with the Ministry of Law and Human Rights before the prospective company owner may receive the incorporation documents. There are also statutory documents to be notarized and Articles of Association to be drafted.
After the statutory documents have been notarized, there are still many steps to be completed; these steps often include the input an approval of government authorities. These are the paying of the registration fee and obtaining of the receipt (to be filed with the Trade Register), the filing of all notarized documents which are to be approved by the Ministry of Law and Human Rights, the application for any necessary business licenses which are to be approved by any relevant ministries or authorities, the registration for the purposes of employment with the Ministry of Manpower, the registration for social security purposes, the obtaining of a tax identification number (NPWP), and the obtaining of a value-added tax (VAT) number. A registered address in Indonesia will also be required, as well as a permanent license for business operations.
If none of the steps listed are bypassed, the entire process of incorporation of a company in Indonesia will be expected to take approximately 35 working days to be completed.